American Express cuts earn rate on 2 cashback credit cards

Aug 4, 2021

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American Express has slashed the earning rate on two of its cashback credit cards. As of today, the Platinum Cashback Everyday Credit Card and the Platinum Cashback Credit Card have been altered to allow for less earn on each pound spent by cardholders.

Unfortunately, it’s bad news – American Express will change the earn rates on both cards to reduce the amount of cashback cardholders get as a reward for their spend.

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Let’s take a look at the earn rates and how they’re changing as of 4 August 2021:

Platinum Cashback Everyday Credit Card

  • Old earn rate (until 3 August 2021): Spend £0 to £5,000 and receive 0.5% cashback on purchases. Spend over £5,000 and receive 1% cashback on all purchases.
  • New earn rate (as of 4 August 2021): Spend £0 to £10,000 and receive 0.5% cashback on all purchases. Spend over £10,000 and receive 1% cashback on purchases.

Platinum Cashback Credit Card

  • Old earn rate (until 3 August 2021): Spend £0 to £10,000 and receive 1% cashback on purchases. Spend over £10,000 and receive 1.25% cashback on all purchases.
  • New earn rate (as of 4 August 2021): Spend £0 to £10,000 and receive 0.75% cashback on all purchases. Spend over £10,000 and receive 1.25% cashback on purchases.

Ultimately, both cards have been devalued. Unfortunately, American Express has chosen to reduce the earn rate on one card and increase the minimum spend for maximum earning on the other. However, the changes don’t necessarily mean you should ditch these cards straight away. They can each still offer value — especially if you’re spending more than £10,000 with either of them in order to lock in the higher earn rate.

Related: Should you choose a rewards credit card or a cashback credit card?

On a positive note, however, American Express has said that the welcome bonus on both cards will not be changing. In the case of the Platinum Cashback Everyday Credit Card, that means you’ll earn 5% cashback on your purchases for up to £100 in the first three months of cardmembership. As noted above, the earn rate will be changing as of 4 August, but the card’s £0 annual fee will be staying the same. The card has a 22.2% representative APR and variable purchase rate with an assumed credit limit of £1,200.

Related: These are the best UK cashback credit cards for 2021

The Platinum Cashback Credit Card, meanwhile, will still offer 5% cashback on your purchases for up to £125 in the first three months of cardmembership. As noted above, the earn rate will be changing as of 4 August, but the card’s £25 annual fee will be staying the same. The card has a 27.3% representative APR and 22.2% variable purchase rate with an assumed credit limit of £1,200.

Featured photo by The Points Guy.

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